Your business data tells a story. The question is, do you know what story is being told?
Many times, the story is not crystal clear. Too much information is available, and the story can be hidden.
Just look at your KPIs…What is a KPI? Key Performance Indicator.
Key Performance Indicator (KPI) Definition
A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets. High-level KPIs may focus on the overall performance of the business, while low-level KPIs may focus on processes in departments such as sales, marketing, HR, support and others.
So what is the definition of KPI? What does KPI mean? What does KPI stand for? Here are a couple other definitions:
- Oxford’s Dictionary definition of KPI: A quantifiable measure used to evaluate the success of an organization, employee, etc. in meeting objectives for performance.
- Investopedia’s definition of KPI: A set of quantifiable measures that a company uses to gauge its performance over time.
- Macmillan’s Dictionary definition of KPI: A way of measuring the effectiveness of an organization and its progress towards achieving its goals.
What is my definition of a KPI?
Ask yourself this question about a piece of data… If this moves up or down, will if effect my business in a substantial way? If the answer is yes, it is a KPI and it should be monitored and tracked.
What is a KPI for you may or may not be a KPI for another business. Although many companies have similar KPIs they track, the collective KPI group is unique to each business.
What areas do you look for your KPIs?
- Projects Management
Make sure to check out the others areas by using the links on this page.